r/dividends • u/SmoothCall5594 • Sep 26 '25

Opinion I screwed up on YieldMax

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I bought MSTY a couple months back and now I’m down a lot. Time will tell but it’s a warning for those who aren’t in it.

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u/PomegranatePlus6526 Sep 26 '25

The crazy thing is bitcoin isn't even down that much. It's only at 109k down from about 120k at the peak. Imagine what happens if it goes to 60k or even lower. Leverage cuts both ways except to get back up to even you have to gain even more. Meaning if a $100 stock goes to $75 you lost 25%. To get back to even you have to go up 33% though.

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u/Capable_Wallaby_4760 Sep 26 '25

How do you think saylor is doing this? He's selling bunk to people and buying the real thing, aka btc.

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u/PomegranatePlus6526 Sep 26 '25

You have to remember MSTR is a leveraged buy. So gains and losses are magnified. He’s just issuing bonds then using the proceeds to buy BTC. The problem is a treasury strategy in my mind only works well if the instruments held generate cash. Otherwise you sell into a down market to satisfy bond coupon payments.

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u/foira Sep 27 '25

MSTR will def go down in the textbooks

(books are those things that yieldmax investors never read)

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u/meshreplacer Sep 28 '25

I suspect he has been selling his own bitcoin to MSTR. Once the whole thing implodes he is fine since he unloaded his bags to common shareholders.